Report says IMF prioritises debt over public spending
The report, Still Cooking with a Failed Recipe, published by ActionAid, Education International and the Tax and Education Alliance, argues that the IMF's country-level policy advice continues to focus on fiscal consolidation even as it publicly promotes spending on health, educat..
✨ Key Highlights
A new report claims the International Monetary Fund (IMF) prioritizes debt repayment and austerity over public spending, despite its stated commitment to inclusive growth, particularly affecting countries like Kenya.
- Kenya's debt servicing accounts for 28.7 percent of government revenue, more than three times the allocation to health.
- The report, "Still Cooking with a Failed Recipe," was published by ActionAid, Education International, and the Tax and Education Alliance.
- The IMF advocates for fiscal consolidation and indirect taxation, limiting governments' ability to fund essential services like health and education.
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World Bank Approves Sh161.8 Billion Loan to Kenya After Demanding Reforms - July 2026
The World Bank has approved a Sh161.8 billion ($1.25 billion) financing package for Kenya, contingent upon the nation implementing a series of critical reforms. A separate report indicates that Kenya is among developing economies facing shrinking fiscal space due to rising debt and IMF-backed reforms, limiting its ability to fund growth and public services. Another report claims the International Monetary Fund prioritizes debt repayment and austerity over public spending, despite its stated commitment to inclusive growth, particularly affecting countries like Kenya. Deputy President Kithure Kindiki has pledged that proceeds from the sale of government assets will be strictly allocated to infrastructure development, not recurrent expenditure. President William Ruto and Deputy President Kithure Kindiki have defended the government's decision to sell stakes in Safaricom and Kenya Pipeline Company, with proceeds earmarked for financing major infrastructure projects.
